Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282088 
Authors: 
Year of Publication: 
2023
Series/Report no.: 
Discussion Paper No. 396
Publisher: 
Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition, München und Berlin
Abstract: 
How does antitrust enforcement against patent-based monopolies affect innovation? I address this question by empirically studying the US antitrust case against Xerox, the monopolist in the market for plain-paper copiers. In 1975, Xerox was ordered to license all its copier-technology patents in the US and abroad. I show that this promoted innovation by other firms in the copier industry, measured by a disproportionate increase in patenting in technologies where Xerox patents became available for licensing. This positive effect is driven by increased innovation by Japanese competitors. They started developing smaller desktop copiers and their innovation became more diverse.
Subjects: 
antitrust
innovation
patents
compulsory licensing
Japan
Xerox
JEL: 
O30
O34
L41
K21
Document Type: 
Working Paper

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